How to Start a Branch Office in UAE for Your Business?

The United Arab Emirates (UAE) continues to be one of the world’s most attractive destinations for business expansion. With its strategic location, investor-friendly regulations, and robust economic infrastructure, it provides an ideal ecosystem for global companies looking to establish a presence in the Middle East.

Setting up a branch office is one of the most efficient ways for foreign businesses to enter the UAE market. As a trusted business setup consultancy, AVANTEX provides end-to-end support to help companies navigate the setup process smoothly and efficiently.

What Is a Branch Office in the UAE?

A branch office is an extension of a foreign parent company, operating under the same legal identity. It is not considered an independent corporate entity; instead, it represents the parent company in the UAE and can conduct the same activities as approved by local authorities.
Unlike a subsidiary, a branch office does not have separate share capital and is fully controlled and owned by the parent company.

Benefits of Opening a Branch Office in the UAE

100% Foreign Ownership

A branch office structure allows the parent company to maintain complete ownership without involving a local partner or shareholder. This ensures full control over operations, strategy, and decision-making while complying with UAE commercial laws.

Full Managerial and Operational Control

The parent company exercises total authority over the branch’s activities, including hiring, financial management, commercial decisions, and operational processes. This alignment ensures consistency in global standards, brand identity, and service delivery.

Ability to Invoice Clients and Operate Commercially

A UAE branch office can conduct the same activities as the parent company, including signing contracts, issuing invoices, importing or exporting goods, and generating revenue. This makes it a powerful vehicle for direct market entry and business scalability.

Strategic Market Access

Located at the crossroads of Asia, Africa, and Europe, the UAE provides unparalleled access to regional and global markets. Companies can leverage world-class logistics, modern infrastructure, and strong international trade connections to expand across the GCC and other emerging markets.

Ease of Profit Repatriation

UAE regulations allow branch offices to transfer profits, capital, and returns back to the parent company without restrictions. This simplifies international financial management and ensures transparency in global accounting practices.

Mainland and Free Zone Flexibility

Foreign companies can choose between mainland and free zones depending on the nature of business, market reach, and operational requirements. Mainland branches offer wider access to the UAE market, while free zones provide sector-focused advantages, simplified regulations, and cost-effective setup options.

Types of Branch Offices You Can Set Up

Mainland Branch Office

A mainland branch office is ideal for companies seeking full access to the UAE market, including private and government sectors. Mainland Business Setup enables participation in local tenders, contracts, and large-scale projects. This option also supports a broader range of commercial activities aligned with the parent company.

Free Zone Branch Office

Free zone branches are located within designated economic zones that provide multiple incentives, including simplified registration, 100% ownership, tax advantages, and industry-specific benefits. Free Zone Business Setup are well-suited for businesses operating in logistics, technology, media, finance, manufacturing, and other specialized sectors.

Representative Office

A representative office is restricted to non-commercial activities and is primarily used for marketing, brand promotion, market research, and strengthening customer relationships. It cannot generate revenue or engage in trading activities, making it ideal for companies testing the UAE market before full-scale entry.

Financial Services Branch (DIFC / ADGM)

For financial institutions such as banks, investment firms, insurance companies, and wealth management providers, specialized branch structures are available under DIFC (Dubai International Financial Centre) and ADGM (Abu Dhabi Global Market). These branches operate under international regulatory frameworks and require approval from financial regulatory authorities, offering a secure and globally recognized platform for financial services.

Key Requirements to Start a Branch Office in UAE

To establish a branch office, the parent company must submit specific documents and follow compliance standards:

• Valid incorporation documents of the parent company
• Notarized board resolution authorizing branch setup
• Power of Attorney appointing a UAE representative
• Local service agent appointment (mainland only)
• Business activity alignment with the parent company
• Office space lease
• Ministry of Economy registration (for mainland branches)

Step-by-Step Process to Start a Branch Office in the UAE

1. Determine the Business Activity & Jurisdiction
The first step in establishing a branch office in the UAE is to define the exact business activities the branch will perform. These activities must align with those of the parent company and comply with UAE regulations. Once defined, businesses must select a suitable jurisdiction. Mainland branches offer full market access and the ability to participate in government contracts, while Free Zone branches provide simplified setup procedures, industry-specific benefits, and 100% ownership. The choice should reflect the company’s operational goals, target customers, and long-term expansion strategy.

2. Apply for Name Reservation & Initial Approval
After deciding on the business activities and jurisdiction, the next step is to reserve a trade name that reflects the parent company or brand identity. Simultaneously, an application for initial approval must be submitted to the relevant authority, such as the Department of Economy & Tourism or the applicable Free Zone authority. This process verifies the eligibility of the business, ensures the proposed name complies with UAE regulations, and confirms that the planned activities are allowed in the selected jurisdiction.

3. Obtain Ministry of Economy Approval (Mainland Only)
For mainland branches, approval from the UAE Ministry of Economy (MOE) is mandatory before proceeding to license issuance. The MOE evaluates the parent company’s legal documents, verifies the nature of the business activities, and ensures the appointment of a Local Service Agent (LSA) is in place. This approval is a critical regulatory step, confirming that the branch office meets all UAE legal and commercial requirements prior to licensing.

4. Prepare & Notarize Parent Company Documents
Parent company documents are essential for branch registration and must be carefully prepared and attested. Key documents include the Certificate of Incorporation, Memorandum & Articles of Association, Board Resolution authorizing the branch, and Power of Attorney for the UAE representative. These documents must first be notarized in the home country, attested by the home country’s Ministry of Foreign Affairs, and then legalized by the UAE Embassy. Once in the UAE, further attestation is done by the UAE Ministry of Foreign Affairs to complete the legal verification process.

5. Sign Agreement with Local Service Agent (If Mainland)
For mainland branch offices, appointing a Local Service Agent (LSA) is a legal requirement. The LSA must be a UAE national and acts as a liaison between the branch and government authorities. Importantly, the LSA does not hold any ownership or decision-making power in the business. A formal agreement is signed and notarized, detailing the responsibilities and rights of the LSA, ensuring smooth regulatory compliance and ongoing administrative support.

6. Obtain the Business License
Once all approvals are in place and the required documents are attested, the branch office can apply for its trade license. This license officially establishes the branch as a legal entity authorized to conduct the approved business activities in the UAE. Receiving the license marks the formal completion of the company’s legal setup process, allowing the branch to begin operations.

7. Secure Office Space
A physical office is mandatory for activating the branch license. Mainland branches require a valid Ejari tenancy contract, while Free Zone branches must provide a lease agreement or flexi-desk contract within the Free Zone. Securing office space not only fulfills licensing requirements but also enables the branch to register employees, apply for visas, and operate professionally in the UAE.

8. Complete Immigration & Labour Setup
After licensing and office setup, the branch must register with UAE immigration and labour authorities. This includes obtaining the Establishment Card, registering with the Ministry of Labour (for mainland branches), and applying for employee visas and work permits. Completing this step ensures that the branch can legally hire staff and operate without compliance issues.

9. Open a Corporate Bank Account
A corporate bank account is necessary for handling business operations, transactions, and payroll. UAE banks require thorough documentation, including proof of business activities, parent company records, and details of ultimate beneficial owners (UBOs). AVANTEX assists in preparing the necessary documents, selecting a suitable banking partner, and ensuring smooth account opening to support the branch’s financial operations.

Cost of Opening a Branch Office in UAE

Costs vary depending on jurisdiction, business activity, and administrative requirements, and typically include:

• Licensing & registration fees
• Ministry of Economy fees (for mainland)
• Local service agent fee (if applicable)
• Office rent
• Visa and immigration costs
• Document attestation charges
• AVANTEX service fees (optional and transparent)

Documents Required

• Certificate of Incorporation
• Parent company trade license
• Memorandum & Articles of Association
• Board resolution approving the UAE branch
• Power of Attorney for authorized signatory
• Passport copies of directors and shareholders
• Attested financial statements (if required)
• Office lease agreement (Ejari / Free Zone contract)

Common Challenges & How AVANTEX Helps

Setting up a branch office involves coordination with multiple government bodies and strict documentation standards. Common challenges include:

• Understanding regulatory differences across jurisdictions
• Meeting attestation and legalization requirements
• Securing timely approvals from the Ministry of Economy
• Navigating visa and labour processes
• Bank account compliance checks

AVANTEX provides comprehensive support by managing documentation, obtaining all approvals, coordinating PRO services, and ensuring complete regulatory compliance, allowing businesses to focus on core operations.

Why Choose AVANTEX for Branch Office Setup?

AVANTEX has extensive knowledge of the legal and regulatory frameworks governing both mainland and Free Zone branch offices in the UAE. This expertise ensures that your branch setup complies with all local laws and licensing requirements, minimizing delays and avoiding potential compliance issues.

Setting up a branch office involves multiple government approvals and detailed documentation. Wemanages the entire process, from notarizing and attesting parent company documents to obtaining Ministry of Economy approval and final trade licensing. Their meticulous approach ensures that all steps are completed efficiently and accurately.
Each client is assigned a dedicated consultant who provides personalized guidance throughout the setup process. These professionals advise on jurisdiction selection, business activity alignment, and strategic planning, helping companies make informed decisions that support long-term growth in the UAE.

We handle all government liaison services, including PRO approvals, labour registrations, and visa processing. Their experience ensures that these time-consuming procedures are completed quickly and correctly, allowing businesses to focus on operations rather than bureaucracy.
Opening a corporate bank account and maintaining compliance with UAE banking regulations can be complex for foreign businesses. AVANTEX provides expert guidance, assisting in documentation preparation and liaising with banks to facilitate smooth account opening and financial operations.

Our Business setup consultants in Dubai offers clear and upfront pricing for all branch office setup services. Clients benefit from a transparent fee structure, with no unexpected costs, ensuring that budgets are maintained and financial planning remains predictable throughout the setup process. With years of experience, AVANTEX has successfully assisted numerous international companies in establishing branch offices in the UAE. Their proven track record demonstrates reliability, efficiency, and a deep understanding of the UAE business environment, making them a trusted partner for any expansion.

Conclusion

Establishing a branch office in the UAE provides global companies with a strategic advantage and direct access to one of the world’s fastest-growing markets. With a straightforward process and business-friendly environment, the UAE remains a top choice for expansion.
Partnering with AVANTEX ensures a smooth, compliant, and efficient setup so you can begin operations with confidence.
Contact AVANTEX today to set up your UAE branch office and accelerate your business growth.